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Venture capital firm Nexus Venture Partners has divested a significant portion of its stake in India Shelter Finance Corporation (ISFC), marking a notable shift in its investment strategy. On Monday, Nexus offloaded 5.97% of its holding in the Gurugram-based housing finance company for INR 482 crore through open market transactions.
ISFC primarily caters to first-time home loan buyers in India’s low- and middle-income groups, focusing on Tier II and Tier III cities.
Nexus Venture Partners, a US-based firm, divested its stake through its affiliates Nexus Ventures III and Nexus Opportunity Fund II Ltd. The firm sold 64 lakh shares in ISFC through two bulk deals on the Bombay Stock Exchange (BSE). The shares were sold at prices ranging between INR 752.35 and INR 753.27 per share, culminating in a total transaction value of INR 481.95 crore.
This divestment has reduced Nexus Venture Partners’ total stake in ISFC from 21.32% to 15.35%. Nexus had been a significant backer of ISFC since 2012, accumulating a stake of 28.2% through multiple funding rounds. This move comes after a decade of sustained investment, underscoring a partial exit strategy while retaining a notable share in the company’s future.
Simultaneously, financial institutions like Goldman Sachs and SBI Life Insurance have capitalised on the opportunity to increase their stakes in ISFC. Goldman Sachs acquired 7.42 lakh shares, representing a 0.69% stake, while SBI Life Insurance picked up 6.70 lakh shares, or 0.62%, at an average price of INR 752.35 per share.
Combined, the two institutions increased their holdings by 1.31% for a total of INR 106.26 crore. Post-transaction, Goldman Sachs’ stake in ISFC stands at 1.78%, and SBI Life Insurance’s holding has grown from 1.94% to 2.56%.
Additionally, ICICI Prudential Life Insurance purchased 7.70 lakh shares, representing a 0.72% stake, for INR 57.93 crore, further reflecting institutional confidence in ISFC’s market potential.
Despite these transactions, ISFC’s shares saw a sharp decline of 7.81%, closing at INR 730 per share on the BSE.